Hankook Tire Reaches Record Sales in 2010

Not all tire manufacturers had bad news to report in 2010. Hankook Tire just announced its fiscal year 2010 performance results with global sales an operating profit that have broken the company’s previous annual records. Hankook’s global tire sales topped $4.8 billion USD (11.5% increase year-over-year), and their operating profit was an impressive $523 million (6.7% increase year-over-year). What makes Hankook’s accomplishments so special is the fact that raw materials have been steadily rising in price and forcing manufacturers to re-think their supply chains, pricing, and plans for growth.

So Il Lee, president of Hankook Tire America Corporation, had this to say about the company’s successful year: “In 2010, our company has had another successful, record-breaking year in North America as well as globally. Hankook Tire North America, USA and Canada combined, recorded sales of 12.6 million tires, totaling $1 billion with a growth rate of 21 percent.”

So what did Hankook say was behind their record-breaking performance? Emerging markets drove demand for wholesale Hankook tires while sales in strategic markets in North America, Europe, and Asia remained steady. Hankook has also enjoyed a positive response and surging demand for their Ultra-High Performance (UHP) tires. Global sales for UHP tires alone saw a 42% increase year-over-year.

So where do they go from here? Hankook has set the bar higher for 2011, aiming to achieve $5.4 billion in global sales, another 11% annual increase. Hankook believes that boosted production capacity in their Hungarian plant will make achieving this goal possible. Stay tuned for more news.